Which of the following is a limitation of Ratio Analysis? a) Financial ratios cannot be used to
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Question:
Which of the following is a limitation of Ratio Analysis?
a) Financial ratios cannot be used to assess a firm'sprofitability.
b) Ratio analysis assumes that inflation has no effect on afirm's business.
c) Ratios that reveal large deviations from the norm mererlyindicate the possibility of a problem.
d) it is difficult to access audited financial statements forratio analysis.
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Authors: Steve Jackson, Roby Sawyers, Greg Jenkins
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